11/25/13

"Central-bank buying accounts for $1.6 trillion, more than half, of the total demand for bonds in 2013"

"Substantially all the net demand for bonds is going to come from the official sector.

Central-bank buying, overwhelmingly from the Fed and the Bank of Japan, accounts for the lion’s share of official-sector buying.

..the heavy lifting is still going to have to be conducted by QE operations.

...the bond market is dominated on both sides by the official sector.

...what you’re looking at, when you look at the bond market, is government issuing debt and governments buying it.

...there doesn’t seem to be any conceivable way that the private sector could possibly be able to fund the still-substantial government deficits which have been bequeathed to us by the financial crisis.

...QE is likely going to be around for a while, just as a matter of mathematical necessity.

The world’s national deficits can’t get funded any other way."

Felix Salmon
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Central banks are printing money to buy government debt. The more money printed, the more government debt purchased by the world's central banks;

The more government debt purchased by central banks, the higher financial markets go;

Central Banks increase the money supply to purchase government debt so the government can spend it on keeping the populous happy, the money supply rises, and inflation heats up.

Venezuela equities are up more than 570% in the last 12 months;

Same thing, different era, except this time, just about every central bank in the world is doing it at the same time;